Second Suites Guide

Second Suites
A n I n f o r m a t i o n G u i d e f o r H o m e o w n e rs
SECOND SUITES GUIDE
This guide explains what it means to operate an authorized
second suite in a private house. It describes established standards
that help ensure that houses with second suites are safe and livable
both for you and for your tenants.
In Ontario, municipalities regulate residential zoning by-laws
for second suites.These regulations have changed over time,
and not all homeowners may be aware of the changes, nor of
the complexities of creating a second suite.
To help you navigate through the regulations and requirements,
the Landlord’s Self-Help Centre has compiled the information
that you need to operate a second suite and to address any
community concerns. Knowing the standards will give you
greater peace of mind and help you reduce your liability as
a landlord.
We welcome feedback on this guide, and offer additional
information on our web site www.landlordselfhelp.com.
We encourage you to get in touch with any comments
or questions you may have.
WHO IS INVOLVED?
In creating or upgrading a home with a second suite, you will
encounter many city departments, associations and community
agencies. Be prepared: there may be costs associated with permits
and inspections by government officials.
Building Department
These city officials deal primarily with newly created suites and
construction.They review zoning and building plans and administer
construction permits.
Municipal Licensing and Standards
These city officials deal primarily with upgrading second suites.
They review property standards and municipal codes, carry out
inspections to ensure compliance with by-laws, and respond to
complaints from neighbours about second suites.
Fire Services
Municipal fire services will perform fire safety inspections and
provide confirmation letters about the fire safety of a house with
a second suite.
Electrical Service Authority
This is a provincial, not-for-profit organization that ensures that
wiring and electrical service to second suites comply with the
necessary regulations and provides confirmation letters to document
this compliance.
Community agencies
Many community groups provide public education on second
suites and offer services to help tenants and landlords, including:
• mediation and conflict resolution;
• referral services;
• advertising space on bulletin boards, in newsletters or
through Web sites; and
• information and referral services.
These agencies include housing organizations, community health
centres, and clinics like the Landlord’s Self-Help Centre.
SECOND SUITES GUIDE
1
THE BENEFITS
OF SECOND SUITES
Authorized second suites can provide safe and affordable housing
for Toronto residents. An estimated 20% of all secondary rental
stock in Toronto can be found in private homes containing second
suites. Despite fluctuating vacancy rates, second suites tend to be
10% to 15% cheaper than regular low-rise and high-rise apartments.
Second suites have a variety of tenants. Some may house aging
parents who want to remain independent, but need support, adult
children who have completed their education and are starting
their careers. Others provide affordable housing for tenants in
established neighbourhoods, close to jobs, transit and shopping.
Homeowners benefit too, since the rent from a second suite can
fund renovations or mortgage payments. Finally, the whole
community benefits because additional residents can support
local businesses and services.
NEW PROVISIONS
IN THE CITY OF TORONTO
Provisions permitting second suites throughout the City of Toronto
came into effect in summer 2000.The legislation allows homeowners within the 416/647 area code, to have a second dwelling
unit in any single or semi-detached home (and, in some cases,
within rowhouses).
Although second suites often take the form of basement apartments,
they may occupy an upper floor, or the back part of a house.
For a second suite to qualify as authorized unit, it must meet:
• residential zoning requirements;
• property standards;
• occupancy standards;
• health and safety requirements; and
• fire and electrical codes.
Established standards ensure safety and comfort for
both homeowners and tenants.
If you are a homeowner or homebuyer considering a second
suite, take the time to learn about your obligations in owning
a home containing a second suite.The time you spend planning
ahead will better equip you to handle any situation that arises.
2
SECOND SUITES GUIDE
S T E P - B Y- S T E P G U I D E
Whether you are looking to buy a home with an apartment,
wanting to upgrade an existing rental unit, or considering
building a new unit, you need to make sure you are doing it safely
and responsibly. For each case there is a slightly different way of
going about it.The path to follow depends on the work done to
the property containing the second suite.
I have an existing
second suite
I want to build
a new second suite
Municipal Licensing
and Standards Zoning
Property and Occupancy
Standards Review
Buildings Division Zoning
Planning Examinations
and Building Permits
Fire Safety
Fire Safety
Electrical Safety
Electrical Safety
If there is no evidence that the home has ever had a separate
dwelling, then you would be creating a new second suite.The
area for a second suite may be unfinished and no permits have
been issued to accommodate a second suite, or to allow an
additional kitchen or bathroom in the house. Please see Creating
a New Unit on page 3.
If your house already contains a rental unit or if it appears to have
separate living quarters that have previously been used, it would
be considered as an existing second suite. Please see Upgrading an
Existing Second Suite on page 3.
However, if your property records do not indicate that your
home has already been adjusted to create a two-unit residential
dwelling, you may have to prove that the second suite existed
previously by providing city officials with proper documentation.
C R E AT I N G A N E W S U I T E
There are five basic requirements that must be met before an
authorized second suite can be created. Before constructing a
new second suite, you should assess if your property meets the
following five requirements.
1. The principal residence must be at least five years old.
2. The house must be detached or semi-detached.
Provisions for rowhouses containing second suites have been made
to acknowledge previously existing provincial legislation.
3. The exterior façade of the house cannot be significantly
altered. For example, adding a second and separate front door
may not be permitted.
4. The second suite must occupy a smaller area than the rest
of the house and it must be a single, self-contained
dwelling. It must have a separate entrance and contain proper
kitchen and bathroom facilities.
5. The property must meet parking requirements. Except in
parts of the former City of Toronto, where provisions have been
made to acknowledge limited availability of parking, there must
be space for at least two vehicles.
If your property does not quite meet the basic requirements, but
there is only a very small discrepancy between the property and
the requirements, you can apply to the Committee of Adjustment
for a minor variance. However, the minor variance process can
take time and may lead to some additional costs. See page 7 for
more information on the Committee of Adjustment.
Building Permits and Inspections
You must apply for a building permit to create a new second
suite. All new second suites must comply with the Ontario
Building Code, residential zoning by-laws and property standards.
Any new construction will require a permit and inspections.
Similarly, you will have to obtain permits for all plumbing and
electrical work.There is a charge associated with each permit.
Fees for each application vary depending on the type of work
being done and the amount of work or square footage involved.
Building inspectors review projects during key stages of
construction to ensure the work complies with the Building Code
and approved plans. Inspectors may visit several times, depending
on the project, and they must be able to see the work under
inspection. Inspectors require a minimum of 48 hours’ notice to
book an inspection.They have extensive hands-on experience, so
you should try to be around during their visits.
Note: The Building Division will not inspect a house that you do not yet
own. If you want an inspector to look at a property you are planning to
buy, check theYellow pages under Building Inspection Service.
BUILDING DIVISION
SERVICES FOR HOMEOWNERS
Preliminary Project Review
This new service, offered by the city, provides homeowners
with detailed written zoning comments on a proposal for the
construction of a second suite. A small housing addition will
usually require the submission of the following drawings:
A SITE PLAN is a drawing showing the property and identifying
all the structures on the property in relation to the property
boundaries. It should include an arrow indicating where north
is, the lot lines and their dimensions, the distance between the
structures and the lot lines, and any proposed changes to the
existing grade.
A FLOOR PLAN is a drawing of a house as it would look if it
were cut horizontally a few feet above the floor. One floor plan
is required for every storey or level of the house affected by the
new construction. Each plan shows the interior layout of the
particular level and provides information on the size, type and
location of exterior and interior walls as well as partitions.
ELEVATIONS show the exterior view of each side of the house.
Each elevation is identified according to the direction it faces
(north, east, etc.) and indicates the extent of new and existing
construction along with items such as roof overhangs, roof shape
and eavestroughs.
SECTION DETAILS provide a view of a house as it would look
if it were cut through vertically at a particular location and illustrate
construction details such as footings, foundations, walls, floors
and roof.
All drawings must be accurately drawn to scale in ink, and must
show existing and proposed constructions, along with elevations
and dimensions.
Fast Track Service
This service offers over-the-counter, while-you-wait residential
building permits for small building projects and minor alterations.
It is available at all civic centres on specific mornings between
9 a.m. and 11 a.m. For more information on this service, contact
the municipal office for the area in which your property is located.
(See the back pages of this guide.)
Electrical Safety
Building permits do not cover electrical safety codes.You must
contact the Electrical Safety Authority and arrange for an inspection
of any change to electrical services or wiring that occur during
construction of a second suite.
Doing It Right!
If you are constructing a new suite, consider hiring a general
contractor. However, if you are already experienced in small
construction or renovation jobs, you can save money doing part
of the work yourself and acting as your own general contractor.
This job includes coordinating the work of several tradespeople
and arranging for inspectors to come in and see the work at the
right times.
City officials can help you determine the feasibility of creating
an authorized second suite.Take advantage of the professional
expertise of Building Division staff before you submit an
application for a building permit. Building inspectors and plan
examiners can offer suggestions to help solve construction
problems, often before they occur.
SECOND SUITES GUIDE
3
UPGRADING AN
EXISTING SECOND SUITE
H O W T O P R E PA R E
FOR AN INSPECTION
There are risks associated with operating a home containing
separate living quarters.These risks are reduced when a home
is properly equipped for a second suite, but you need to make
the required changes before the suite is occupied.
Having an authorized second suite ensures that your home meets
basic health and safety principles that protect you and your tenant.
If an existing second suite does not fit the regulations, it would
be considered an unauthorized unit.The onus is on you to ensure
that your second suite meets established standards. If a fire or
flood occurred, you could be held responsible.
The best way to establish a positive working relationship with city
services would be to request an inspection yourself. Remember,
someone else can also request an inspection of your second suite.
For example, your tenant or a neighbour might ask a city official
about the safety or maintenance of your second suite; the city would
then respond to this complaint. Sometimes, properties containing
a second suite are found during a routine neighbourhood inspection
by a city official, and the city must follow up on this discovery.
When upgrading an existing unit, you should first approach
Municipal Licensing and Standards, a division of the Urban
Development Services Department of the City of Toronto.
Every inspection will review of the following:
• Is the property permitted to have a suite within the
existing residential zone?
• Does the dwelling fit within basic conditions?
• Does the property have all the right building permits?
• Does the suite meet the City's property standards?
If a Municipal Licensing and Standards inspector finds that the
second suite does not comply with one or more requirements,
he or she will issue a charge or a notice of violation.This is not
intended to penalize you for trying to upgrade your second suite;
it is intended to ensure that your suite meets the standards for
getting authorization.
If the inspector does approve your second suite, you should
proceed to arrange for a Fire Services inspection.
Your tenant or a neighbour can contact the city about
safety or maintenance concerns relating to a second
suite, leading to an inspection by city staff.
Getting an Inspection
You should arrange for an inspection of your second suite. An
inspection of a second suite is a two-step process. First, Municipal
Licensing and Standards will check that zoning regulations permit
a second suite on your property.Then, an official from Municipal
Licensing and Standards will come to your home to inspect the
property.This usually happens within a couple of weeks of your
request, depending on the availability of inspectors.
The inspector will ensure that your second suite is fit for habitation,
using the regulations contained in the City of Toronto Municipal
Code, Chapter 629, relating to occupancy and property standards.
There is no charge for this inspection.
Once a second suite is approved for zoning, you will be referred
to City of Toronto Fire Services for an inspection for life safety
systems compliance at no cost.
Municipal Licensing and Standards can help you with general
inquiries about fire, building and electrical codes, and refer you
to the right sources for more information.
4
SECOND SUITES GUIDE
RESOLVING
COMPLIANCE ISSUES
HOW TO HIRE
A CONTRACTOR
A charge or notice of violation may vary, depending on the nature
of the infraction. A specified date may be attached to this
compliance order. Compliance may be obtained in several ways:
• renovating the property so it fits within established
standards;
• addressing zoning variances through the Committee
of Adjustment;
• closing the second suite.
Whether you are creating a new second suite, or carrying out
renovations to upgrade a second suite, it is your responsibility to
ensure all work is done according to legal requirements.You are
also responsible for calling the city for an inspection at certain
stages of construction. Hiring a contractor with relevant experience
and the proper insurance is a good way to meet these responsibilities.
A general contractor is responsible for:
• the quality and completion of all work set out in your
contract;
• paying public liability and property damage insurance
to cover workers; and
• removing debris and cleaning up the site after construction.
To complete specialized jobs such as wiring, plumbing, carpentry,
dry walling or general labour, a general contractor will often hire
a subcontractor.
Notice of Violation
In order to operate an authorized second suite, you must comply
with any recommendations made by Municipal Licensing and
Standards, and do so at your own cost.The possibility of achieving
compliance depends on the nature of the violation and the time
and cost to correct it. Most minor deficiencies are correctable.
If Municipal Licensing and Standards finds that your second suite
does not comply with the zoning by-law, you may apply for a
variance through the Committee of Adjustment.
The Committee of Adjustment
Toronto’s Committee of Adjustment consists of citizen members
who regularly hold public hearings to consider applications for
minor variances, permissions, and consents.The Committee is
required to ensure that the intent and purpose of both the Zoning
By-law and the Official Plan are maintained, and that the proposal
is appropriate for the development and use of the subject land or
building.
When you apply to the committee, all registered owners of land
located within 60 metres your property will be notified of your
application.The committee will set a time and date for a public
hearing. All interested persons are invited to attend the public
hearing to express their views and concerns. If you disagree with
the Committee’s decision, you will have 20 days to appeal the
decision to the city.
Non-permitting use charge
If the inspector finds a condition that poses a significant risk to
the safety of your tenants or your household, you may be required
to shut down the apartment immediately and remove the elements
that make it a separate unit within your house.You may be asked
to take out any doors, locks or walls that separate the rental unit
from the rest of your home, along with kitchen equipment such
as a refrigerator or stove. It is up to the inspector to decide whether
or not to issue a request to remove tenants and components of
the apartment.
If a second suite unit has existing tenants, and you are required to
shut down the suite, you may find yourself in a difficult position.
Under the Tenant Protection Act there are specific reasons for which
a landlord may remove an occupant and a specific process to
follow. Be sure to check the requirements and to follow the
proper procedures of the Act if you need to remove tenants from
the second suite.
Finding a contractor
You can get information on contractors from one of several
sources:
• recommendations from people who have had similar
work done;
• the Greater Toronto Home Builders’ Association;
• hardware and building supply outlets that do their own
contract work and offer the same guarantee they do on
their retail goods; and
• the Yellow Pages: look under General Contracting or the
specific building trades needed.
Seek out a licensed practitioner with experience and formal
training in the area of work that you require. Look for one who
is affiliated with a credible association or agency and has good
references.You should also check for public liability insurance
coverage on the company or contractor.
You should ask at least three contractors to bid on any work
required. Approach the contractors when plans have been drawn
up, so they will all be basing their estimates on the same information,
and both you and they are clear about what is needed.
Do not select a contractor who:
• gives you an estimate without seeing the job site;
• asks for a large down payment for materials; and/or
• refuses to provide a written contract stating exactly the
work to be done.
Wait until you received all the estimates before you make your
decisions. All estimates should have a detailed breakdown of
labour and material costs.The lowest estimate is not necessarily
the best. Make sure the contractor has considered all the work
you want done and is bidding on the same work as the others.
Always ask for a receipt for payments and do not pay for work
that has not been completed, except special orders for materials.
SECOND SUITES GUIDE
5
Holdbacks
Do not make your final payment or sign a certificate of completion
until all work is completed to your satisfaction. Hold back 10%
of each interim payment to ensure that a lien cannot be placed on
your property by suppliers or workers whom the contractor did
not pay.You can check at the Land Registry Office to ensure that
no lien has already been registered. Holdbacks should be released
after 45 days, when the time limit for creditors to register a lien
has expired.
The Toronto Licensing Tribunal will provide information about
any previous complaints on a contractor, and can later offer
mediation services for any disputes that may come up.
The Contract
The only way to make sure your contractor will do the work as
expected is to have a contract that includes:
• names and addresses of both parties;
• a description of the work to be done;
• materials to be used and workers to be hired;
• identification of responsibilities such as obtaining necessary
permits and other paperwork, or removal of debris;
• a statement of warranties, along with details of property
damage insurance and public liability; and
• start and completion dates with prices and payment
schedules.
You can write up a contract yourself if both you and the contractor
agree to its terms and sign it.The same applies if you or your
contractor need to make any changes as unexpected situations arise.
If the representative determines that the complaint has serious
implications for the contractor’s licence, he or she will file a
report with the Toronto Licensing Tribunal.The tribunal will hold
a meeting to hear your complaint and make a judgment as to
whether the contractor’s license should be retained, revoked or
have conditions placed on it.
W H AT I S A P E R M I T ?
A permit is written approval that grants you formal permission
to make significant structural changes to your house and helps
ensure that any structural change is safe, legal and sound. It should
be obtained before you begin any construction or demolition.
The building permit process ensures that building standards are
met and protects your interests, as well as those of the community
at large.Your contractor may get permits on your behalf, but it is
ultimately your responsibility to comply with all requirements.
You can apply for any type of permit at any City of Toronto
Building Division, Monday to Friday, 8:30 a.m. to 4:40 p.m.
Contact the building department in the area in which your property
is located. Contact numbers for each district can be found in the
back of this guide.
What happens if you do not get a permit?
If you start construction but do not have the necessary permits,
you may be ordered to stop work, prosecuted, and even ordered
to remove work already done. If you are uncertain as to whether
you need a permit for your project, contact your local civic
centre directly.
If you have problems with a contractor
You can lodge a complaint against a contractor or subcontractors
with Municipal Licensing and Standards at the City of Toronto.
A representative will meet with you to investigate the complaint.
YOU NEED A PERMIT TO
YOU DO NOT NEED A PERMIT TO
renovate, repair or add to a building;
demolish or remove all or a portion of a building;
change a building’s use;
install, change or remove partitions and load-bearing walls;
make new openings for, or change the size of, doors and
windows;
• build a garage, balcony or deck;
• excavate a basement or construct a foundation;
• install or modify heating, plumbing, air conditioning systems
or fireplaces.
• replace existing, same-size doors and windows, subject to
distance from property lines;
• install siding on small residential buildings, subject to
distance from property lines;
• build a roofless deck under 2 feet (0.61 metres) that is not
attached to a building;
• build a utility shed under 100 ft2 (9.29 m2);
• reshingle a roof, provided there is no structural work;
• install eavestroughs, provided that drainage is contained on
your property;
• replace or increase insulation, drywall or plaster;
• damp-proof basements;
• paint or decorate;
• install kitchen or bathroom cupboards without plumbing;
erect a fence (except for swimming pools; outside pools
require permits).
•
•
•
•
•
6
SECOND SUITES GUIDE
MEETING FIRE SAFETY
S TA N D A R D S
New Suites
Whether or not any construction takes place, the conversion of a
home to a two-unit residential occupancy will require a building
permit. Plan examiners will review life safety systems when you
submit an application to the Building Division for the creation of
a new suite.Thus, in creating a new suite in your house, you will
have to consult with the Building Division; this will also ensure
fire code compliance.
Existing Suites
Fire safety requirements for an existing suite are found in the
Ontario Fire Code, Section 9.8, “Two Unit Residential Occupancies”
(Regulation 385/94). Any existing second suite requires a General
Inspection for Fire Code Compliance of Two Unit Residential
Dwelling carried out by the local municipal fire service. You
should carry out your own initial assessment before calling for
an inspection. Check the Fire Code to determine if anything
needs to be upgraded in your home to meet code requirements.
Preparing for a fire inspection
Before you embark on any change or construction, contact the
Plans Examination Section of your local Fire Services office.
This simple step can save you time and money.You will be asked
to prepare floor drawings of your property and to arrange for
a preliminary planning review.You need to provide three sets
of drawings for each floor of the property containing the second
suite.This should basically be a general site plan that shows
location of all walls, doors, transoms, windows (interior and
exterior), stairways, fire escapes and balconies.
The plan examiner will review the drawings and give you feedback on specific details and any required changes to make sure
your home meets established codes.
Ultimately the onus is on you to ensure that your home complies
with provisions set out in the Ontario Fire Code. In all cases,
minimum fire safety requirements must be met.The penalty for
fire code violations is a fine of up to $25,000 or a prison term
of up to one year, or both.
Where can I get information?
In addition to the simplified chart in this guide (see next page)
you can get information on fire regulations from several sources:
• Fire code regulations with visual examples are detailed
on video entitled Fire Safety for Apartments in Houses,
available at Toronto public libraries.
• The entire code can be downloaded from the Web in the
related links page of the Second Suites information hub
found within www.landlordselfhelp.com.
• Fire regulations with commentary can be purchased
directly at Publications Ontario, 1-800-668-9938.
The quality of living conditions and the protection of every
resident living in a house with a second suite is very important.
All second suites must comply with the basic life safety systems
defined in the Ontario Fire Code.Take the time to review the
following requirements:
SECOND SUITES GUIDE
7
FIRE SAFETY
PRINCIPLE
DEFINITION
FIRE CODE REQUIREMENTS AND EXAMPLES*
Containment
Creating a “box” around your rental
unit by having horizontal and vertical
fire separations will confine and
restrict a fire. Ensuring that all walls,
ceiling and flooring fit within
regulation helps limit the spread
of smoke and controls the size of
a fire within a second suite.
Any wall or floor assembly required as a fire separation shall be constructed as a continuous
barrier against the spread of fire. Each dwelling unit shall be separated from other rooms
and areas by a fire separation with assured fire resistance rating. For example:
• Any walls between a common corridor and dwelling units should have a 30-minute
fire resistance rating.
• Doors that are part of a fire separation shall have a 20-minute fire-protection rating
and be equipped with a self-closing device.
• Existing wall and floor assemblies consisting of membranes of lath and plaster or
gypsum board are acceptable.
• 20-minute fire-resistant doors, including any existing 1_-inch solid wood core,
hollow metal or kalamein doors, are acceptable.
Examples of items less than 15-minute fire-resistance rating include wood panelling,
non-rated ceiling tiles, and open wood joists.
Detection and
early warning
Having an alarm system in a home
will enable occupants to know that
there is danger. Providing early
warning signs of a fire enables
homeowners and tenants enough
time to evacuate safely.
Smoke alarms shall be installed and in working order in each dwelling unit.
• “Listed” interconnected smoke alarms shall be installed on or near the ceiling on
each floor within a dwelling unit including every basement.
• “Listed” hard-wired or battery-operated smoke alarms shall be installed near
bedrooms (“hard- wired” refers to permanent wiring from the device to the
hydro panel).
Means of egress
Providing an acceptable and adequate
way to get outside the home is a key
safety feature if a fire occurs. Ensuring
that access to these exits is clear and
unobstructed allows occupants a safe
environment for evacuation.
Each dwelling unit shall be served by at least one means of escape consisting ofa door that
serves only that dwelling unit, opens directly to the exterior from that dwelling unit, and
has direct access to the ground level.
• A continuous path of travel must be provided for the escape of persons from any
point in a building to an exit.
• Windows may serve as a second means to escape, but they have specific
requirements.
• Fire escapes may be used.
• The exit must lead to a safe location outside the building.
• Protection of exits consist of a fire-separated shared interior wall or stairway.
Suppression
Using specialized equipment to slow
down or stop a fire can protect the
lives and property of a homeowner
and tenant.The ability to control
and extinguish fires throughout the
home will also ensure better access
to the building for the fire department
A fire extinguisher should be provided in each dwelling unit. Routes to facilitate access for
fire fighting operations shall not be obstructed by vehicles, gates, fences, building materials,
vegetation, signs or any other obstruction.
• Provide a minimum of a 2A portable fire extinguisher.
• Provide unobstructed walkways from the street to the principal entrance of the
building.
• Ensure fire hydrants near your residence are accessible to fire fighters at all times.
*Refers to the Ontario Fire Code, Section 9.8 for all requirements of two-unit residential occupancies.
RETROFITS AND INSPECTIONS
To ensure the safety of your home, you should retrofit an existing
suite to meet current fire safety codes. A step-by-step procedure
has been established to assist in the approval process.
Obtain zoning approval
Although municipal by-laws allow second suites throughout the
city, certain zoning considerations must be met. In order to get a
fire inspection, your property must be approved by Municipal
Licensing and Standards in terms of zoning.
8
SECOND SUITES GUIDE
Get clearance from the Electrical Safety Authority
Electrical safety is a key component of fire prevention. Ensuring
that your home contains a safe service and wiring system will
increase the safety of the property.You must arrange for your
home to be inspected by the Electrical Safety Authority and
correct any identified deficiencies that result from this inspection
before you get approval for a fire safety inspection.
Work to meet code requirements
Once you have consulted Municipal Licensing and Standards or
the Buildings Division, you will have a clearer idea of what needs
to be done. Follow all recommendations to meet established
standards in a proper manner before calling for an inspection.
Arrange for a fire safety inspection
Once both dwelling units have been inspected and found to comply
with fire code, you may request a “Letter of Inspection” as a record
of the inspection.
Keep in Mind
Carbon monoxide detectors must be installed on the same floor
as any fuel-fired appliance and two floors above it.
It is your responsibility to maintain all of detection devices in good
working order.
Carbon monoxide detectors and smoke alarms must be audible
from the bedroom of the second suite, even with the door closed.
ELECTRICAL SAFETY
Checking to see that the electrical service for your home is safe
and useable is always a good practice. If you are operating a second
suite, this is especially important. Not only will this help you
obtain insurance, but it can also benefit you if and when you
resell your property. Most importantly, though, it will reduce
hazards for you and your tenant.
Any home containing a second suite will need a General Inspection
for Compliance of Two-Unit Residential Dwelling to be considered
an authorized unit.This will guarantee the electrical service is
safe and useable for the number of people living in the house and
for the appliances in the home.
Requirements for electrical installations and electrical equipment
can be found in various sections of the Ontario Electrical Safety
Code (Ontario Regulation 10/02). A licensed practitioner should
carry out any electrical work, followed by an inspection by a
representative of the Electrical Safety Authority.
O B TA I N I N G A C E R T I F I C AT E
OF INSPECTION
Apply for an inspection
Requests for an electrical inspection should be filed before or
within 48 hours after the start of any electrical work on your
house. If possible, the application should be made by the company
or individual planning to carry out the work. All requests for
electrical inspection are documented, tracked, and forwarded to
an electrical inspector to respond.There are fees associated with
this kind of inspection.
Correct any defects
After the inspection, the ESA will identify any hazardous defects.
This information will be given to you with a time provision for
correcting the defects, based on the hazard associated with each
specific defect. Before you make the necessary changes, you must
apply for a permit for any electrical wiring work. Fees for permits
vary with the type and quantity of electrical installations being done.
Obtain a Certificate of Inspection
Once all defects have been corrected and electrical installations
have been inspected and comply with the requirements defined in
the Ontario Electrical Safety Code, you may request a “Certificate of
Inspection” as a record of compliance.
W H AT I S T H E E L E C T R I C A L
SAFETY AUTHORITY (ESA)
LOOKING FOR?
The ESA will conduct a visual inspection to see if the existing
wiring and electrical service are safe. In addition to ensuring that
electrical installations meet the requirements of the Ontario
Electrical Safety Code, the inspector will check to see whether
these installations are in good shape.This review includes:
ensuring electrical plugs are grounded, and not reversed in
polarity, as well as ensuring proper use of extension cords;
ensuring exterior and bathroom plugs meet Ground Fault Circuit
Interruption (GFCI) requirements for all installations of exterior
plugs as of 1977 and all bathroom plugs installations as of 1983;
checking all electrical receptacles and devices, ensuring that
receptacles have proper covers and fit within the established
standards (that is, that the size and the spacing apart is sufficient
and that they lead to a proper amp service – less than nine
receptacles per circuit will likely be approved if all else is adequate;
more than 12 receptacles will be refused);
reviewing the way in which electrical conductors are used and
ensuring there is no deterioration or exposed wiring; misuse can
often be detected if there are loose or hot wires and any insulation
that is deteriorated will be dry or brittle;
ensuring main service is in good working order and that existing
breaker devices are properly connected; this involves checking
for discoloration or indications of moisture or overheating to any
wiring, seeing if the right fuse amp is in the socket (generally 15
amps/socket), and checking for evidence of peripheral damage
from a blow out; and
checking that electrical equipment used in the home is approved
for use in Ontario.
Respond to notification
Unless the Electrical Safety Authority is responding to a hazardous
or emergency situation, notice of the request for inspection will
be provided in writing, and arrangements will be made to schedule
an inspection. Both the homeowner unit and the second suite will
be inspected.
SECOND SUITES GUIDE
9
RUNNING A
SECOND SUITE BUSINESS
Having a second suite in your home is the same as operating a small
business.There are advantages and disadvantages, and naturally, you
want to maximize your gain.
What about my income tax?
Keeping good records is important. Under the Income Tax Act
and its regulations, you must declare all of the rent you collect
as “income.” Any reasonable expenses made in operating a second
suite may be deducted from your rental income, under certain
conditions. If the second suite occupies one-third of the property
and your household occupies two-thirds of the house, then you
can deduct one-third of certain expenses that apply to the entire
house from your rental income. Expenses that apply only to the
second suite are 100% deductible from rental income.
You must back up all purchases and operating expenses with
invoices, receipts, contracts or other documents.You can also
write off certain types of payments as capital cost allowances over
several years. Any questions about the effect of rental income on
your income tax can be directed to Canada Customs and Revenue
Agency.They also publish a pamphlet, Rental Income Tax Guide,
which is available free of charge.
Expenses a homeowner can deduct
100% DEDUCTIBLE:
• vacancy advertising costs;
• accounting costs;
• legal expenses (preparing leases or solving landlord-tenant
matters);
• interest on last month’s rent (paid to tenants when you
return their deposit).
PARTIAL DEDUCTION (% based on area of suite in relation to
home) mortgage interest;
• property taxes on whole house expenses;
• heat, light and water (unless the tenant pays separately);
• insurance premiums;
• some maintenance and repair items;
• some landscaping costs;
• legal fees of a sale (if purchased with the intent to rent).
Will my property taxes increase?
Overall, the property tax impact of second suites will be small.
Usually, a property’s current value assessment (CVA) does not
increase unless there is a 5% increase in the total property value,
or at least $10,000. Depending on the location, a second suite
generally increases the value of a home by only 2% to 5%, usually
not enough to result in a CVA increase.
The major exception would be a second suite that is created by
building an addition.This could significantly affect the total value
of the property and result in a property being reassessed. If you
want to get some idea of the possible change to your property
tax, call the Property Tax Inquiry Line (see page 17).
10
SECOND SUITES GUIDE
Insurance Considerations
Notify your insurance company or broker as early as possible
about your plan to add a second suite to your house.You should
adjust your policy, before and after construction, to reflect the
changes in liability exposure and value of the house.Your current
insurance company will probably be willing to continue coverage
once you rent the suite. If not, you can always arrange coverage
with another company.
Expect an average increase of 15% to 50% on your annual premiums
(remember, part of your insurance expenses will be tax-deductible).
You can buy additional insurance to protect you against the loss of
rental income if fire or an accident prevent you from renting out
your suite.
Increasing your personal liability insurance to reflect your new
position as a landlord is especially wise.You should also ensure
that you properly insure all workers and subcontractors during
construction.
For more information, call the Insurance Bureau of Canada (see
page 17).
Are you ready to be a landlord?
Besides the investment needed to create a second suite, you should
understand all the legal obligations involved in becoming a landlord.
You have the right to collect rent on time, not have your property
damaged and not be harassed or disturbed by your tenant.You
also have legal responsibilities. Most important, you are responsible
for providing a safe home to your tenants.
The relationship with a tenant is governed by Ontario’s Tenant
Protection Act.The following three provisions from the Act are
especially relevant for second suites:
• security of tenure: a tenant has the right to occupy the
suite until valid grounds for eviction are proven and
proper notice has been given, even during a dispute;
• housing standards: a tenant has the right to live in a
suite that is habitable, safe and properly maintained;
• reasonable enjoyment: a tenant has the right to have
overnight guests, to cook foods they enjoy, and to come
and go as they please.
All tenancy agreements are subject to rules and regulations about
discrimination un der the Human Rights Code. As a landlord,
you should be aware how this affects the tenant selection process
and your interactions with the tenant. Community mediation
services can often help resolve problems when you and your
tenant disagree. Several services are available to help both a
homeowner and a tenant.
SELLING OR
PURCHASING HOME
WITH A SECOND SUITE
A second suite can increase the resale value of a home, since
the income potential of an existing suite will attract purchasers.
Compliance with established standards increases the marketability
of the property and may enable you to qualify for a larger
mortgage loan.
Each transaction involving a second suite will be different, depending
on the property. For example, if you buy a house containing a
rental unit, you may find lenders or mortgage insurance brokers
reluctant to provide funding if the unit does not meet fire safety
standards.You may also face very serious consequences if you rent
out a non-conforming suite and an accident occurs.
When purchasing a home containing a second suite, be sure to
request and carefully review documentation relating to permits
and inspections required for an authorized unit. Similarly, if you
plan to sell a home with a second suite, consider upgrading the
existing unit so that it fits within established standards, as
compliance may make your home easier to sell. Be sure to keep
all the documentation for interested homebuyers.
Selling a rental property with tenants in possession can be a
challenge.You must comply with the provisions of the Tenant
Protection Act with respect to a tenant’s privacy when arranging
for appraisers and prospective purchasers to view the house.
You also need to be familiar with the process for terminating
a tenant’s lease.
Special note to Realtors
Real estate agents are licensed by the province under the Real
Estate and Business Brokers Act and hold an obligation to ensure
all sale transactions reflect a homebuyer’s awareness of the risks
associated with the purchase of a home containing a second suite.
The public will rely on the realtor for accurate information.
Realtors can reduce their own risk, and that of their clients,
by telling clients about the rules for second suites. If this does
not occur, the realtor may be held liable. Contact the Toronto
Real Estate Board for more information (see page 18).
SECOND SUITES GUIDE
11
WHERE TO GET
M O R E I N F O R M AT I O N
This following list provides contact information for the
organizations and departments described in this guide.
Landlord’s Self-Help Centre ............................416-504-5190
www.landlordselfhelp.com
Buildings Division
www.toronto.ca/building
East York Civic Centre
850 Coxwell Ave. ........................................416-397-4488
Etobicoke Civic Centre
399 The West Mall ........................................416-394-8002
North York Civic Centre
5100 Yonge St. ............................................416-395-7000
Scarborough Civic Centre
150 Borough Dr. ..........................................416-396-7526
Toronto City Hall
100 Queen St.W. ........................................416-392-7539
York Civic Centre
2700 Eglinton Ave.W. ..................................416-394-2490
Municipal Licensing and Standards
www.toronto.ca/licensing
West District (Etobicoke and York) ....................416-394-2535
East District (Scarborough and East York) ............416-396-7071
North District (North York) ............................416-395-7011
South District (Toronto) ................................416-392-6940
Business and trades licensing ............................416-392-3051
To lodge a complaint about a contractor ..............416-392-3113
Toronto Fire Services
www.toronto.ca/fire/prevention
Etobicoke and York ........................................416-338-9450
North York..................................................416-338-9150
Scarborough and East York ..............................416-338-9250
Toronto ....................................................416-338-9350
Access Toronto ............................................416-338-0338
www.toronto.ca/accesstoronto
Access Toronto is a general inquiry line and can
assist homeowners with information on second
suites specific to the City of Toronto.
Electrical Safety Authority ..............................905-507-4949
www.esainspection.net
Tax Information
Income Tax Information..................................800-959-8281
Rental Income Tax Guide ................................800-959-2221
Property Tax Inquiry Line ..............................416-338-4829
Land Registry Office ....................................416-314-4430
This office can provide a survey of your property
which you may need when applying for a building
permit, insurance, mortgage or other legal purposes.
Insurance Bureau of Canada ............................416-362-2031
www.ibc.ca
12
SECOND SUITES GUIDE
Canada Mortgage and Housing Corporation
www.cmhc-schl.gc.ca/en/index.cfm
CMHC has an excellent Web site full of valuable information on
all the things you need to consider when renovating your home,
including hiring a contractor.
Ontario Association of Architects ......................416-449-6898
www.oaa.on.ca
The OAA can help you find an architect to create
architectural drawings of your renovation project.
You will need drawings done to scale in order to
get a building permit.They do not have to be done
by an architect.You can do the drawings yourself,
as long as they are drawn to scale.
Greater Toronto Home Builders Association (GTHBA)
www.newhomes.org
GTHBA has a wealth of online articles that provide
valuable information on hiring a contractor.Visit
the GTHBA Web site and search by typing “hiring
a contractor.”You will find dozens of links to
relevant articles.
Renomark ..................................................416-391-4663
www.renomark.ca
Renomark is a service of the Greater Toronto Home
Builders Association. Only renovators who abide
by the program’s code of ethics may participate.
These renovators agree to provide warranties to
their customers; to value good customer service;
and to keep up with the latest information, trends
and regulations in home building.
City of Toronto, Consumer Services Bureau..........416-326-8800
Before hiring a contractor, check to see if any
complaints have been lodged against the contractor.
You must submit a request under the Freedom
of Information Act.The Bureau can tell you only
if a complaint has been lodged, it cannot provide
you with details of specific complaints.
Toronto Real Estate Board ..............................416-443-8100
www.torontorealestateboard.com
Add numbers for Committee of Adjustment?